Assume Japan has a flexible exchange rate relative to China and pursues expansionary fiscal policy to lower

Question:

Assume Japan has a flexible exchange rate relative to China and pursues expansionary fiscal policy to lower the Japanese unemployment rate. Would the expansionary fiscal policy be more effective if Japan had high or low international capital mobility with respect to China?
Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Question Posted: